Oil rises with end to U.S. government shutdown in sight, helped by supply disruptions

[Data analyzing in commodities energy market: the charts and quotes on display. US WTI crude oil price analysis. Stunning price drop for the last 20 years.]
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Crude oil futures ended higher Monday as news of progress toward an end of the U.S. government shutdown in its record-setting 41st day added some optimism to the market.

News that shutdown negotiations have advanced is "placing a slight 'risk back on' attitude to stocks and energy," Dennis Kissler of BOK Financial said in a note, adding that a positive angle is in jet fuel demand, which has supported crude prices, as analysts had been "anticipating a large drop in jet fuel demand if the government stalemate is not ended by this week."

Futures for gasoline and diesel led gains in the oil complex Monday, as a string of refinery issues in the U.S. and drone strikes on Russian refineries have helped lift fuel prices, analysts said.

"Refinery issues in the Great Lakes and West Coast have kept prices elevated," GasBuddy analyst Patrick De Haan said in a blog post, adding that thousands of U.S. flight cancellations due to the federal government shutdown could create more gasoline demand ahead of the Thanksgiving holiday.

In Russia, Lukoil reportedly halted operations at its Volgograd refinery after it was struck by Ukrainian drones, while the group also declared force majeure at Iraq's giant West Qurna-2 oilfield, after Western sanctions on the Russian oil major hampered its operations.

Front-month Nymex crude (CL1:COM [https://seekingalpha.com/symbol/CL1:COM]) for December settled +0.6% to $60.13/bbl, front-month January Brent crude (CO1:COM [https://seekingalpha.com/symbol/CO1:COM]) finished +0.7% to $64.06/bbl, and U.S. natural gas (NG!:COM) rose for the seventh time in nine sessions, with the front-month December Nymex contract closing +0.5% to $4.338/MMBtu.

ETFs: (USO [https://seekingalpha.com/symbol/USO]), (BNO [https://seekingalpha.com/symbol/BNO]), (UCO [https://seekingalpha.com/symbol/UCO]), (SCO [https://seekingalpha.com/symbol/SCO]), (USL [https://seekingalpha.com/symbol/USL]), (DBO [https://seekingalpha.com/symbol/DBO]), (DRIP [https://seekingalpha.com/symbol/DRIP]), (GUSH [https://seekingalpha.com/symbol/GUSH]), (USOI [https://seekingalpha.com/symbol/USOI]), (UNG [https://seekingalpha.com/symbol/UNG]), (BOIL [https://seekingalpha.com/symbol/BOIL]), (KOLD [https://seekingalpha.com/symbol/KOLD]), (UNL [https://seekingalpha.com/symbol/UNL]), (FCG [https://seekingalpha.com/symbol/FCG]), (XLE [https://seekingalpha.com/symbol/XLE])

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